Maturity profile

Financing risk refers to the risk that the financing of the Group's capital requirements and the refinancing of existing loans could become more difficult or more costly. This risk can be decreased by ensuring that maturity dates are evenly distributed over time, and that total short-term borrowings do not exceed available liquidity. Disregarding seasonal variations, net debt shall be long-term, according to the Financial Policy.

The Group's goals for long-term borrowings include an average time to maturity of at least two years, and an even distribution of maturities. A maximum of SEK 3,000m in long-term borrowings is normally allowed to mature in the next 12-month period. When Husqvarna assesses its refinancing risk, the maturity profile is adjusted for available unutilized committed credit facilities. In addition, seasonality in the cash flows is an important factor in the assessment of the financing risk. Consequently, Husqvarna always takes into account the fact that financial planning must include future seasonal fluctuations.

The average adjusted time to maturity for the Group's financing was 4.0 years (3.3) at the end of 2014.

Future undiscounted cashflows of loans and other financial instruments as of December 31, 2014 1)
SEKm 2015 2016 2017 2018 2019 >2019 Totalt
Financial leases -40 -39 -37 -37 -37 -244 -434
Bonds -1,095 -645 -1,579 -1,385 -428 -78 -5,210
Bank and other loans -149 -779 -39 -895 - - -1,862
Derivative liabilities, interest rate 2) -20 -16 3 4 - - -29
Derivative liabilities, foreign exchange 2) -724 -11 - - - - -735
Trade payables -3,154 - - - - - -3,154
Total financial liabilities -5,182 -1,490 -1,652 -2,313 -465 -322 -11,424
   
Unutilized committed revolving credit facilities covering short-term financing 5,000 - - - -5,000 - -
Adjusted maturity profile -182 -1,490 -1,652 -2,313 -5,465 -322 -11,424
   
Liquid funds excl. derivative assets 1,579 - - - - - 1,579
Derivates assets 2) 494 - - - - - 494
Trade receivables 2,898 - - - - - 2,898
Total financial assets 4,971 - - - -   4,971
Net financial instruments 4,789 -1,490 -1,652 -2,313 -5,465 -322 -6,453
   
1) Please note that the table includes the forecast future nominal interest payment and, thus, does not correspond to the net book value in the balance sheet.
2) For more detailed information on derivative contracts, see tabel under "Credit risk in financial activities" in Note 19 in the Annual Report.

Annual Report 2014